Will Tesla Motors Inc Be Loyal To California?

Tesla Motors Inc (NASDAQ:TSLA)’s gigafactry list reportedly has five U.S. states that are competing with each other to get the factory. The competition is very intense, as all the states stand to reap major economic benefits from this factory, which is estimated to be worth $5 billion and to accommodate more than 6,000 employees. Of these five, California is one state that is trying hard to get the factory.

Proposed site

One of the state’s assembly members favors a site about 40 miles northwest of Merced, according to a report from ABC30.

“I’ve delivered a letter to the governor’s office and to Tesla indicating that we have shovel ready lots ready to go,” State Assemblyman Adam Gray said. “Both the local government and myself are prepared to do whatever we need to do to help create that investment in jobs and in the industry in the Central Valley.”

While each location might have its pros and cons, Gray has selected Patterson City in Stanislaus County as the most suitable location. The city is the preferred choice of many companies and has many other industrial buildings with large campuses. Interstate 5 has optimum space that can be used for commercial purposes.

Rod Butler, city manager for Patterson City, believes that the place acts as a major employment center in the region for many people who do not mind traveling daily from various different locations, including Turlock, Modesto, Tracy, Merced, Atwater, etc. He said Tesla Motors Inc (NASDAQ:TSLA) joining the area would be an enhancement to the image the location bears and “another opportunity for us to bring jobs and workers into our community.”

California wants Tesla to be loyal

While Nevada, Arizona, New Mexico and Texas are also considered to be good options for the new factory’s location, Californian lawmakers strongly believe that Tesla should build the new factory there because the state has already helped the company in many ways by providing tax breaks and supporting green businesses.

Producing luxury electric vehicles is an area of expertise for the California-born company, which now aims at making more affordable vehicles. Tesla Motors Inc (NASDAQ:TSLA) now wants to manufacture bulk batteries with higher capacity that will be comparatively much more powerful and efficient than the earlier ones. Manufacturing lithium-ion cells in the new factory, to be set up in a vast area of 10 million square feet, is a part of this goal.